AAP (Advance Auto Parts) GF Value Rank : 2 (As of Dec. 14, 2024)

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What is Advance Auto Parts GF Value Rank?

Advance Auto Parts has the GF Value Rank of 2.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Advance Auto Parts's GF Value Rank

For the Specialty Retail subindustry, Advance Auto Parts's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Advance Auto Parts's GF Value Rank Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's GF Value Rank falls into.

Advance Auto Parts GF Value Rank Related Terms

Thank you for viewing the detailed overview of Advance Auto Parts's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Advance Auto Parts Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Advance Auto Parts Inc (NYSE:AAP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AAP:Mexico 0H9G:UK AWN:Germany AWN:Germany A1AP34:Brazil AAP:Argentina

Address

4200 Six Forks Road, Raleigh, NC, USA, 27609

Website

https://www.advanceautoparts.com

Advance Auto Parts is a leading auto parts retailer in North America with more than 4,000 store and branch locations. About 55% of the firm's sales are geared toward the professional channel, with the remaining 45% going to the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units conducive to various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub and spoke distribution model critical to meeting customer needs.

Executives

Kristen L Soler	officer: EVP, Chief HR Officer	12200 FOX VALLEY STREET, RALEIGH NC 27614
Jones Jeffrey J Ii	director	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Word Herman L Jr	officer: EVP, U.S. Stores & CQ Ind.	1033 LINENHALL WAY, WAKE FOREST NC 27587
Carla Jean Bailo	director	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Lee Eugene I Jr	director	1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Shane M Okelly	director, officer: Director, President and CEO	4200 SIX FORKS ROAD, RALEIGH NC 27609
Anthony A Iskander	officer: Interim CFO, SVP, Fin & Treas	4200 SIX FORKS ROAD, RALEIGH NC 27609
Douglas A Pertz	director	1801 BAYBERRY COURT, RICHMOND VA 23226
Joan M Hilson	director	150 THORN HILL DRIVE, WARRENDALE PA 15086-7528
John Francis Ferraro	director	9 WALNUT AVE, CAMBRIDGE MA 02140
Szilagyi J Stephen	officer: EVP Chief Supply Chain Officer	15027 JUNE WASHAM ROAD, RALEIGH NC 27609
Pellicciotti William J Jr	officer: SVP, Controller and CAO	4200 SIX FORKS ROAD, RALEIGH NC 27609
Robert B Cushing	officer: EVP, Commercial	1432 FREEMAN LANE, PLEASANTON VA 94566
Sherice Torres	director	PO BOX 20833, SAN JOSE CA 95160
Natalie Schechtman	officer: SVP Human Resources	45 ROUND HOUSE ROAD, BEDFORD NY 10506